Stock of the day: Tesla
12 June 2024
Recently, Tesla traders have been watching NVIDIA and Apple with some envy, as these stocks have seen significant bullish moves while Tesla has struggled. Tesla's price has been constrained within a symmetric triangle pattern, marked with green lines, for the past few weeks. I had noted that a breakout was imminent, and indeed, Tesla broke out of the triangle to the downside, which is a negative signal. This breakout also saw the price fall below a horizontal support marked with orange.
This bearish movement suggests a sell signal for Tesla. Despite a late-session upswing, the overall sentiment remains negative as long as the price stays below the lower green line and orange support. If the price were to climb back above these levels, it would indicate that the breakout was false and could signal a potential buy. However, for now, the outlook for Tesla appears bearish, with the recent breakout confirming the downtrend.
This shift in Tesla's fortunes contrasts sharply with the bullish trajectories seen in other high-profile stocks, emphasizing the market's dynamic nature and the importance of technical patterns in guiding trading decisions.